The study being descriptive in nature used primary and secondary data from the following sources that is questionnaire and published financial statements of the company. Prior to secondary data analysis, primary data was analysed using descriptive statistics to establish the impacts of internal controls on the company’s operational efficiencies and financial performance. Internal Control System is a vital in every organization to achieve their management objectives. The study focuses in AFFS’s. The study examined whether there is a relationship between the internal controls system and the financial performance. In this study internal control is measured by control environment, risk assessment, control activities information and communication and monitoring and the financial performance are measured by profit, efficiency and liquidity respectively. To test this hypothesis data were collected through questionnaire from the employees of AFFS’s. Regression analysis was used to measure the variables. The study finds that internal control and financial performance are statistically significant in determining financial performance. The study concluded that, the AFFS’s external auditors report their findings directly to the board or to a board committee while the board reviews the qualifications and the independence of the company's external auditors. Policies and procedures are periodically reviewed by the board to ensure that appropriate internal controls have been established. In addition, all company personnel in the areas of control understand their roles, accountability for their activities, approves the company's systems of internal controls. The study recommends that, for any company, the external auditors report their findings directly to the board or to a board committee; the board should review the qualifications and the independence of the company's external auditors. Policies and procedures should be periodically reviewed by the board to ensure that appropriate internal controls have been established.

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